Indonesia has emerged as the global leader in tax expenditure transparency, surpassing South Korea in the 2026 Global Tax Expenditures Transparency Index (GTETI). This index evaluates countries based on the regularity, quality, and scope of their tax expenditure reports. Indonesia, Southeast Asia’s largest economy, has achieved this top position with a score of 79.9 out of 100, followed closely by South Korea and Australia.
The move to the top spot highlights Indonesia’s dedication to enhancing the transparency of its fiscal policies. According to Deni Surjantoro, a spokesperson for the Finance Ministry, the country’s tax expenditure report plays a critical role in maintaining transparent oversight of tax expenditures and incentives. These fiscal policies are designed to support the general public, as well as micro, small, and medium enterprises (MSMEs) in Indonesia.
Surjantoro emphasized that households and MSMEs benefit significantly from these expenditures, receiving more than 70% of the total tax incentives. In 2025, this equated to approximately Rp 389 trillion, or $22 billion. These incentives are targeted towards essential needs such as food, housing, education, healthcare, and transportation, with the broader goal of creating jobs and improving the overall quality of life.
The Indonesian government remains steadfast in its commitment to bolstering the transparency of its tax expenditure system. Surjantoro noted that this transparency is a crucial component of sound and accountable fiscal governance. By ensuring clarity in how tax incentives are allocated, the government aims to foster a more equitable economic environment, benefiting both individuals and businesses alike.